Thousands of informal small businesses in Nigeria risk losing access to lucrative corporate contracts as new tax reforms introduce strict compliance rules for companies.
The shift is driven by a strict provision in the Nigeria Tax Administration Act (NTAA) 2025, which exposes large companies to a N5 million administrative penalty if they award contracts to unregistered businesses that lack a valid Tax Identification Number (TIN).
By transferring the tax-registration risk from the vendor to the hiring company, the law is expected to trigger a “no TIN, no contract” policy across the corporate sector. While the government aims to boost tax compliance, the move threatens to cut off vital revenue streams for micro-suppliers, such as artisans, freelancers, transporters, and farmers, who rely on these corporate contracts to survive.
Although businesses have long been expected to obtain TINs, the NTAA 2025 fundamentally changes the compliance landscape by penalizing the
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